FAFSA opens today. Seniors, it’s time to complete the form to apply for financial aid at the colleges you’re considering. For those that are not seniors yet, use this as a planning opportunity to help you understand how college costs work and how you can better understand your unique affordability plan and set yourself up to be more successful in the college planning process.
Even if you don’t expect to qualify for need-based aid, most colleges require the FAFSA to award merit scholarships and other institutional aid. The form is straightforward and usually doesn’t take too long.
FAFSA Tips
Student vs. Parent Assets
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Student-owned assets (savings accounts, investments, etc.) are assessed at a 25% rate.
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Parent-owned assets are assessed at only 5%.
Translation: the more money in a student’s name, the less aid you may receive. Depending on your situation, moving assets into a parent account before filing can save you money.
The SAI Number
When you finish the FAFSA, you’ll receive a Student Aid Index (SAI). This is what the government estimates your family can contribute.
It is not necessarily what you will pay.
Some colleges meet 100% of need, but most use their own formulas.
Expect a potential “gap” between your SAI and the actual financial aid offer.
The CSS Profile
Selective colleges often require an additional form called the CSS Profile. Unlike FAFSA, this dives deeper into your finances, sometimes including home equity and other assets. It’s more intensive, but important if your colleges require it, and each college does things a little differently.
Estimating Costs
Unofficial Packages: After filing the FAFSA, you can ask a college’s financial aid office for an unofficial aid package. This is helpful if you need numbers before official offers arrive. Typically you have to be accepted to the college first for them to generate this. For elite colleges, they usually send the aid package with acceptance.
Net Price Calculator: Every college must have one on its website. This tool gives you a good estimate, especially useful if you’re still comparing multiple schools.
For my own kids, I use the Net Price Calculator for every college we consider before moving forward. It gives me a quick idea of how generous a school may be with financial aid and whether it is worth pursuing further. While no calculator is perfect, it can save families a lot of time and help avoid schools that may not be financially realistic.
As a general rule, out-of-state public universities tend to be among the least generous options financially. However, there are exceptions. Some schools offer regional tuition discounts, reciprocity agreements, or special scholarships that can bring costs much closer to in-state rates.
I’ve mentioned this before, but another great tool is Niche’s True Cost Calculator.
The calculator allows you to enter some basic income and asset information and provides a ballpark estimate of what you may actually pay at up to 20 colleges at once. It is not perfect, but it is one of the fastest ways I know to compare affordability across a large list of schools.
Reviewing and Appealing Aid Packages
When official offers arrive, don’t assume the first number is the final one. Colleges often have flexibility, but families rarely negotiate.
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I recommend reviewing every package carefully.
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In many cases, you should appeal and ask for more.
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Having offers from multiple schools gives you leverage.
Think of it like buying a car: there’s usually room to negotiate, but you need the right information to make a strong case. There is more room to negotiate at a private school vs public.
A Quick Note About Financial Aid Planning
Every family’s financial situation is unique. The FAFSA uses prior-prior year tax returns to help determine your SAI, but colleges can also consider significant changes that occur after those tax returns were filed.
If your family has experienced circumstances such as:
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A job loss or significant reduction in income
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Unexpected or excessive healthcare expenses
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A business downturn
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Other major financial changes
You may have options to appeal for additional financial aid.
This information is educational in nature and should not be considered tax or legal advice. If you’d like to discuss FAFSA timing, asset positioning, business ownership, 529 plans, overall college affordability, or planning strategies for younger students, I’d be happy to talk. In many cases, planning ahead can make a significant difference.
Next Steps
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File the FAFSA (and CSS Profile if required).
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Use the Net Price Calculator or request an unofficial package.
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Reach out when your official aid packages arrive. I’m happy to review them with you and help strategize for appeals.
The earlier you take these steps, the better positioned you’ll be to save real money on college costs.